Are China’s Two Biggest Companies Nearing an E-Commerce Showdown?

Tencent, investing heavily in online retail, takes aim at Alibaba

China’s most valuable company Tencent is upping its ante in retail, announcing a major investment into online retailer Vipshop in a move that could establish a new rivalry with Chinese e-commerce king Alibaba.

Tencent will invest $604 million in Vipshop in return for a 7% stake, the companies said Monday. JD.com, China’s second-largest e-commerce firm, said it would also invest $259 million into Vipshop, a smaller rival.